A pension fund for municipal councillors has lost some 35% of an investment it made in property in Klerksdorp – property in the same area where the Public Investment Corporation (PIC) just invested more than half a billion rand, and bought from the same company.

In mid-2015 the MCPF "bought" 11 stands from Isago in the same Klerksdorp extension where the PIC plans to build homes and offices, for around R140 million. Those pieces of land were never actually transferred to the fund. The MCPF was eventually refunded the full amount – apparently using money from the PIC purchase – after it was placed under administration.

But a 12th stand, also from Isago, was actually transferred into the name of the MCPF, which still owns it, and is now trying to be rid of it.

The MCPF paid Isago approximately R64.7 million for the 12th stand, its curator Juanito Damons told Business Insider South Africa. It was last listed on the organisation's books at what it believes to be a more realistic value of R41.8 million – around 35% less than the purchase price.

The MCPF hopes Isago will buy back the land. If not it may auction off that stand, Damons said, then look for a way to recover any shortfall against what it originally paid.

Business Insider has not been able to reach the directors of Isago and its shareholder companies.